Cargo Transport

TRANSPORT

Transport is defined as changing the places of human, object or communication in an economic, rapid and secure way, with intent to provide a benefit.

PURPOSE OF TRANSPORT

The main purpose of the transport sector is to meet the transport demand within the shortest time possible, with the minimum cost and in a secure way.

LOGISTICS AND TRANSPORTATION

Transport service is one of the most important works within the scope of logistics management. The purpose of management of logistics process is to render the products to be available with economic costs in the desired time and place. The duty of the manager is to develop transport policies and to create strategies suitable for fulfilling this function. Transport policy connects all the activities to one another.

TRANSPORT SECTOR

The transport sector consists of the activities enabling products, materials, humans and news geographically. The transport sector is not a sector producing products like the agriculture or industry sector; however, it is a sector playing an important role in the productivity of the other sectors.

IMPORTANCE AND FUNCTIONS OF TRANSPORTATION

When considering that the transport demand is a production factor providing place and time benefits, it is an important instrument positively effecting the other production sectors, in case it is carried out in a secure, rapid and productive way and with the minimum cost needed by the economical development, particularly by industrialization. The transport sector is a service sector having close relation with all other sectors; which directly affects them.

DEFINITION OF CARGO

One of the main service areas of logistics service suppliers is constituted of Cargo transport services. In this context, Cargo transport can be considered as a logistic act in principle. In a more specific context, Cargo transport is a type of shipment service and is in the group of subsidiary services intended for the shipment sector.

The word “cargo” is used with the meaning of “freight, haul” as lexical meaning. When this meaning is taken as a basis, Cargo transport can be defined as the activities related to delivery of any freight from a place to another place. In the international literature, the term “cargo transport” is used as transport of any freight regardless of its weight, dimensions and content; however, in our country freights with weights under a certain weight are called “cargo”. On the other hand, the activity being called cargo transport in our country is called “parcel delivery” in the international literature in terms of its content. In other words, parcel delivery services constituting a sub-section of cargo transport services in the literature, is called Cargo transport services by the operators (Cargo transport firms) in our country.

Regular Cargo is sent by mainly corporate (commercial) customers, while special Cargo is sent by mainly individual (non-commercial) customers. Similarly, Cargo transport is divided into two groups as well. The firs group represents the both types of Cargos mentioned above, while the second group covers only regular Cargo transport (Gould, 1970, s.345).

In Golden Dictionary, the term “Cargo” is defined as “freight, haul”. In Columbia Encyclopedia, ‘aviation’ is referred for the definition of this term. In the mentioned Encyclopedia, ‘aviation’ is defined as the operations related to the activities in relation with air vehicles; and is discussed in three groups as military, general and airway transport (Columbia Encyclopedia, 2006. The word “aviation” is defined as “aviation” (in the known meaning) in Golden Dictionary. When these definitions made in the general sources are combined, the main meaning of Cargo is a freight being transported by airway. In the dictionary of the Turkish Language Society, the word “Cargo” came to our language from English is defined as “aircraft or vessel transporting freight”; material, freight being transported by vehicles such as aircraft, vessel etc.; company transporting freight or post from any place to another place; and the freight or post being transported by that company (tdk.gov.tr 2006). When these definitions are considered, it is seen that the word “cargo” is defined in different forms such as transport vehicle, firm or freight. A more detailed definition regarding Cargo can be made as follows: Cargo is the name of objects and goods such as files, packages, parcels cases etc. placed into a packet or container, weights of which are not much than 100 kg in a one piece, being transported from a place to another place in a certain time.

This definition does not include all kinds of objects and goods into the scope of Cargo; and clarifies the freights that can be considered as Cargo in terms of weight and type. It would be suitable to take this definition as a basis by reason of the fact that it is concordant with the meaning used in our country. As for Cargo transport, it covers the activities related to delivery of cargo in the general meaning. Cargo transport covers transportation of both commercial (corporate) and non-commercial (individual) Cargos. More specifically, Cargo transport can be defined as transportation of objects and goods in a certain time, on an inner-city, inter-city or international basis.

In the Land Transport Law No 4925;

Cargo is defined as goods in a small dimensioned parcel, case and packet placed into a package, weight of which is not much than 100 kg in a one piece

Cargo operator is defined as a person, who has the right of use an independent workplace; who provides the services such as loading, unloading, storing, stowing, transfer and delivery to consignee and carries out or have carried out transport work under his/her supervision and control with intent to receive the Cargo and deliver it to the consignee in a short time; and who undertakes the responsibility arising from such activities;
Logistics and Cargo are often confused with each other. In the term “logistics”, the purpose of which is to present a product to customer with an acceptable price at a proper point and time, without detriment to its quality, the term Cargo is defined as the service of receiving a product, weights of which are not much than 100 kg, from a point and delivering it to another point. In this context, Cargo seems a transport part in logistics. If we carefully pay attention, it is seen that in the definition of the word Cargo a weight not much than 100 kg in a one piece and small dimension are deemed as condition. Accordingly, transport of heavy materials with large volume such as coal and mine, and goods heavier than 100 kg and goods with large volume are not included in the coverage of the word Cargo. Besides, there are something in common between Cargo and Courier in parcel and package transportation.

Courier :

This word represents the whole process of receiving and delivering to consignee the valuable/invaluable documents not related to communication, or unmonopolized gift goods and samples in small dimensions with a weight and volume can be transported by a person on foot or by a motorcycle. However, it covers the transport of all kinds of printed documents and packages, transportation of which is legally banned in the implementation in the market.

Cargo firms generally desire to transport “a piece of object such as a large parcel, case or packet” which has a weight and/or volume cannot be transported by a person on foot or by a motorcycle; while courier firms generally desire to transport numerous parcels and packets with small dimension and weight, within the boundaries of the city, on foot or by a motorcycle. Similarly, Cargo firms desire international or inter-city transport, while courier firms generally desire to inner-city transportation.

In Cargo transport services, there are some terms used related to the presentation form and content of the service. These terms and their meanings are listed below.

• Working Area: It is the boundaries of the residential areas, where the determined addresses are available, at which the Cargo transport firm’s branch and agent carry out the activities of receiving and delivering Cargo. It defines the responsibility areas of all branches, where they carry out the activities of receiving and delivering Cargo.
• Transferred Cargo: It means the cargos, deliveries of which couldn’t be made within the day due to any reasons such as unavailability of the consignee at the address, wrong address or refusal by the consignee; and then which have been remained at the branch for being delivered by the next day.
• Storehouse Receipt for Taking Delivery: It is an official document bearing the banderole of the Ministry of Finance that renders possible to healthily provide the service of receiving the cargo from the address and to enable it to be accepted at the customer’s address. It is issued in 3 original copies. Information on the storehouse receipt is completely filled up during the acceptance of the cargo at the customer’s address, and one original copy of it is submitted to the customer. The other two copies are delivered to the unit for issuing an invoice. After issuing the invoice, one copy of it as attached to the invoice is sent to the delivery center and the other one is filed in the unit.
• Receiving Notice: It is the act of demand of the customers requesting to have Cargo transport service, intended for having their cargos received from the address upon their calling made to the branch of the Cargo firm.
• Receiving from Address: It is the act of receiving the cargo of the customer who gave a receiving notice.
• Departure Branch/Agent: It is the point, at which the cargo is received from the consignor customer, and from where it is transferred to the transshipment center for the delivery to the consignee customer.
• Arrival Branch/Agent: It is the branch/agent, where the cargo is delivered to the consignee customer.
• Aggregated Transport Waybill: It is the official liability document, on which Cargo invoice number and the number of cargo written on that invoice are recorded in order to render possible to transfer the cargo by cargo transport vehicles from branch to transshipment center, from transshipment center to other transshipment center, from other transshipment center to branch.
• Incoming Cargo: It is a cargo directed towards the arrival branch by the transshipment center, in order to be delivered to the consignee customer.
• Consignment Code: They are the cargos received from the consigner customer, with intent to be delivered to their consignees.
• Consignment Code: Issue number of the invoice drawn up for the cargo to be delivered is called consignment code. It is also legibly written on the barcode label stuck on the parcel or packet. It is used for tracking the cargo in the automation program as well.
• Advice Note: It is an informative note left at the consignee customer’s address in case of default in delivery of the cargo due to unavailability of the consignee at the address visited in order to deliver the cargo. Invoice details and the branch of delivery must be stated in the note and the consignee must be requested to contact the branch.
• Decimeter: It s the value obtained by multiplying the width, length and height of the packets, parcels or cases in centimeter (cm) and then dividing them by 3000. In calculations of international consignments, the decimeter value is obtained by multiplying the width, length and height in centimeter (cm) and then dividing them by 6000.
• Cargo with Phonecall Notice: It is a cargo, for which the consignor customer calls the firm and sates that he/she wants the branch to receive his/her cargo and that he/ she wants the consignee to be informed of the delivery in order to enable him/her to receive the cargo from the delivery branch. Cargos requested to be received by the consignees at the delivery branch upon a Phonecall notice are kept there for three days at most. Cargos not received within that period are returned to the consigner.
• File: It is a document with a weight between 0-250 g (or a weight not much than 500gr). Such documents do not contain cash money, check or any valuable documents.
• Cargo delivery document (Document of Ratification from the Consignee): It is an invoice copy, on which identity information of the consignee is written, his/her stamp and signature are placed during delivery of the cargo to the consignee customer.
• Minutes: It is a document required to be issued in case of damage on the cargo or incompleteness or loss in its content.
• Claim Petition of Customer: It is a petition from the customer, containing the information indicating that he/she submits and accepts the condition.
• Consent Letter of Customer: It is a document, by which the customer assigns the Cargo firm as his/her representative, for receiving the cost of the cargo from the insurance company for any reason.
• Plastic Seal: It is the seal bearing its serial number, locked on the door of the transport vehicle in order to ensure the security of the cargos in the vehicle during the transport.
• Mini Packet: It is a cargo with a weight between 251-999 g, being carried in a manifest bag.
• Lock Bag: It is a transport bag, in which goods such as files and mini packets can be transported; which can be securely delivered to it consignee and can be protected against alteration of the special serial number placed on it, if it is closed by the consignor by use of its special adhesive available on it.
• Certificate of Authority: It is a document indicating that the cargo can be received by another person and/or organization in the name and behalf of him/her. Any person or organization has to submit a certificate of authority, when they attend the branch for delivery of the cargos sent to the branch with a receiving notice or phonecall notice.
• Vehicle Voyage Chart: It is a form required to be available in the vehicle, on which time and kilometer data of the vehicle entrances and departures at the transshipment center and Branch/Agent are written,.
• Indebtment: It is the process of sending a cargo arrived wrongfully, to the Branch/Agent active in the area covering the consignor’s address.
• Transferred Cargo: It means the cargos, deliveries of which couldn’t be made within the day of their arrivals to the arrival branch due to any reasons (such as default of the consignee in receiving its consignment with Phonecall notice, unavailability of the consignee at the address); which are required to be received from the Branch/Agent by its consignee within maximum 6 days.
• Minutes for Determining the Condition of the Cargo: It is a document intended for determining the content, issued under the supervision of the customer upon his/her request, in case there is no damage on the cargo.
• Damage Assessment Minutes: it is a document issued for damage assessment in case of any damage (torn, burst, crushing or wetting) on the cargo or its package.
• Line Vehicle: It is an vehicle transporting the cargos to their destinations.
• Parcel Pocket: It is a transparent pocket used for placing invoice onto the parcel.
• Contracted/Subscriber Customer: He/she is a customer; with whom the coverage and conditions of the cargo transport service is determined by mutual signatures.
• Commitment Letter: It is a document willingly given by the customer, who wants to send a certain type of cargo subjected to special conditions determined by the cargo company.
• Receiving at Address: It means receiving and delivery of the cargo at the customer’s address upon submission of storehouse receipt. At different times of the day, customers can demand their cargos to be received from their addresses, by making a telephone call to the Agent / Directorate of Contact Office.
• Delivery at Address :

  It means delivery of the cargos at the customer’s address upon the demand of its consignor at the departure center. They are called "cargos to be delivered to the address".

  Cargos are delivered to their consignees after identification process performed during delivery, in order to ensure the cargos to be securely delivered to the right person; and in order to be able to officially authenticate the person, to whom the cargo has been delivered, in case of any disagreement. Besides, clear identification is a legal obligation. In the announcements regarding this issue published in the 31.12.1997 dated official gazette, private finance institutions, finance leasing companies as well as Cargo companies are included in the obligators required to submit identity evidence, and such identification is made by ID card, driving license or passport.

• Insurance: Cargos not included in the list of cargos to be transported under special conditions are under the company’s guarantee as from the time, at which they are received, to the time of delivery to their consignees; and they are transported in the coverage of insurance. Customers, who want to send a cargo subject to certain conditions determined by the Cargo company, fill up voluntarily a form of commitment letter indicating that they send the cargo voluntarily; and upon that, they don’t make any claim in case any damage or loss occur in their consignments in anyway.
• Delivery Reporting: Cargo firms enter the recipient information into the Cargo automation system, after delivery of the cargos that they received from the customers. By entering the Storehouse Receipt through the website, consignors can see who has taken the delivery of their cargos.
• Invoices: Cargos are invoiced at the departure branch. For the consignments, payments of which are made in cash, invoice is issued when the consigner gives the cargo to the branch. For the consignments received at the address, invoice is issued after delivery of the cargo to the branch, and then the invoice is sent to the customer. For the consignments, payment of which is made by consignee, collection is made at the delivery of the cargo to its consignee.
• Cargo with Phonecall Notice: It is a cargo, for which the consignor customer calls the firm and sates that he/she wants the branch to receive his/her cargo and that he/ she wants the consignee to be informed of the delivery in order to enable him/her to receive the cargo from the delivery branch. Cargos requested to be received by the consignees at the delivery branch upon a Phonecall notice are kept there for three days at most. Cargos not received within that period are returned to the consigner.

ORGANIZATION STRUCTURE OF CARGO COMPANY

In general, organization structure in Cargo companies is as follows.

General Directorate

Being used centrally, general directorate consists of the following sections.

Cargo Operations

It enables company’s all units to carry out productive studies, follows up the activities of the company within the scope of Cargo operation, monitors and directs the studies of all the units in its field.

Sales and Marketing

It is responsible for fulfillment of all sales, marketing and customer relations activities in accordance with the Quality Management System, carried out within the scope of Sales & Marketing Procedures; and for coordination of such activities.

Financial Affairs

It ensures accounting and financing processes to be conducted orderly in accordance with the related laws and legislation, and conducts all financial processes.

Administrative Affairs

It ensures administrative works to be conducted orderly in accordance with the procedures and instructions.

Data Systems

It follows national and international developments, the best practices in the IT sector and Logistics sector, threats and opportunities emerging in or out of the organization; orients them according to the requirements of the work; presents them to the company's management and enables them to be applied.

Human Resources, Training

It is responsible for application of all human resources functions in some subject such as employment process, performance and career management, pricing and social rights, and training.

Quality Assurance and Internal Audit

It coordinates the activities intended for establishing, developing and sustaining Quality Management System, in the name of the top management.

Regional Directorates and Affiliated Units

In the structure of a general cargo company, there are also regional directorates affiliated to general directorate. As for the organization structure in regional directorates contain the following constituents.

1. Sales and Marketing
2. Financial Affairs
3. Human Resources, Training
4. Cargo Operations
5. Administrative Affairs
6. Branch Managers